It starts with a few gifts, a big braai, and a road trip. By mid-December, what started as a few festive purchases can become one of the biggest expenses on the household budget. The monthly debit orders start to look like the easiest place to find some breathing room.
glu Chief executive Michele Jennings has seen how that story can go.
“We’ve all fallen into the trap of putting gifts or big purchases on credit,” says Jennings. “I learned early on that if you borrow, it should be for something that lasts.”
Your first bonus or December salary can feel like an opportunity to say yes to everything. The challenge is enjoying that freedom without creating financial pressure for your future self.
Celebrating with the people you love matters, but so does walking into January on solid financial footing.
Start with January
Festive spending arrives in small pieces: a gift here, a braai there, a road trip or family obligation. None of it feels significant on its own, but together it adds up fast.
Many households start December carrying debt. The Reserve Bank’s latest figures show the average household owes about 61% of a year’s take-home pay.
Jennings suggests planning December backwards. “Add up January first: school fees, uniforms, rent or bond, groceries and your usual debit orders. Set that money aside. What’s left is your December budget, and you can spend it with a clear conscience.”
If you support extended family, include those commitments in your planning too. “A conversation in November beats a difficult one in December.”
Know what you’re keeping
When budgets tighten, financial protection is often one of the first expenses people consider cutting. The problem is that the risks it protects against don’t disappear after the festive season.
“The festive season lasts a few weeks,” says Jennings. “Life’s surprises can arrive on any day of the year, and that’s what cover is for. It replaces your income if you can’t work. It supports your family if the worst happens.”
Cover can be more expensive to replace later, which is why Jennings recommends reviewing your policies rather than cancelling them out of hand. “Sometimes people end up paying for benefits they don’t fully understand or may no longer need. So here’s the test: can you explain in one sentence what a policy pays out, and when? If you can’t, ask.”
“Life changes, and your cover should change with it. The cover you needed when you bought your first car may be very different from what you need later in life.”
Before cancelling anything, Jennings recommends speaking to a qualified financial adviser about the options available to you.
Many people avoid these conversations because they feel embarrassed about their finances or worry they’ve made poor decisions. Jennings believes that is exactly when advice matters most.
“A good adviser isn’t there to judge you. They’re there to help you understand your options and make informed decisions that work for your circumstances.”
Borrow for what lasts
Credit is where December gets expensive. “Ask yourself whether it will still be around in March. The gifts, the travel and the big family lunch will be happy memories by then. The repayments will still be here.”
For younger consumers especially, festive debt can delay goals such as building savings or creating an emergency fund.
Cash gives you a natural limit. So does a family spend cap, or a Secret Santa where everyone contributes one thoughtful gift. Continue paying essential premiums and contributions where possible, and think carefully before making major purchases.
Looking past December
Financial confidence is built through small decisions made consistently, long after the decorations come down. “The best plans leave room for both the celebrations and the surprises,” says Jennings.
Jennings’ advice is simple: know what January will cost before December spending begins.
“Enjoy every minute of the season,” says Jennings. “But make sure you walk into January knowing you’ve protected both today’s celebrations and tomorrow’s opportunities.”
